capitalisation of fixed assets

This query is : Resolved

kamini (Querist)
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16 November 2008 hi! i want to know which date to b treated as capitalisation date,i mean when we receives an assets but transfer it to stores and some installation cost is yet to b incurred and after some months we install it so like installation date is 1.4.08 and purchase date is 1.11.07 and store receipt voucher date is 15.11.07.
can we do so that consider aasets in book at the time of purchase and start considering for depreciation at the time of installation.
please clarify with the reference of AS-10 & AS-6

Jitender

Jitender (Expert)
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16 November 2008 it will be capitalized only when it is ready to use i.e after installation.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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17 November 2008 The same should be treated as Capital WIP till the date of its installation when it can be capitalised to the respective head of asset.

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